The Head of Finance and Customer Services presented the Financial Monitoring Report for the third quarter of the 2020/21 financial year.
Members were advised that Officers were projecting an estimated £1.093 million overspend by the end of the financial year. This was primarily caused by lost income, particularly in relation to parking charges, during the Covid-19 pandemic. However, the Government had confirmed that the Council would be receiving a further £468,000 to help cover lost income and that an additional contribution would be made to the authority to cover any further losses.
Funding had been placed in reserves in respect of business rates payments. This fund was intended to help cover the costs arising from any appeals that might be submitted by eligible businesses and it was considered prudent to have a reserve to cover these costs if needed. However, should the appeals not materialise then this reserve could be released to help balance the Council’s budget position moving forward.
The Council had agreed particular savings and additional income for inclusion in the budget in 2020/21. Despite the Covid-19 pandemic, the Council had made good progress in respect of delivering savings and this would help the authority to achieve a balanced position at the end of the financial year.
There was a significant underspend in the capital programme. This was primarily due to delays to project work caused by the Covid-19 pandemic. Officers were reviewing the capital programme to ensure that the profile was accurate moving forward. This review would take into account the likely continuing impact of Covid-19.
RESOLVED that the current financial position in relation to revenue and capital budgets for the financial period April 2020 – December 2020 be noted.
1) an increase to the Capital programme 2020/21 of match funding from PCC for digital upgrade of CCTV £19k be approved;
2) the increase in the capital programme of £30k for 2021/22, £20k 2022/23 for Welfare and business improvements at Bromsgrove Sporting be approved;
3) an increase to the revenue budget by £4k, to be funded by reserves to help fund a school’s financial literacy programme, be approved.